71 Members of Congress Reported To Be in Violation of Federal Law

71 Members of Congress Reported To Be in Violation of Federal Law

Federal VIOLATION – 71 Members Of Congress Implicated!

(UnitedVoice.com) – For decades, Americans questioned how Congress members became so wealthy during their public service. The issue came to a head in 2012 in the wake of the 2008 Great Recession and the passing of Obamacare in 2010. In November 2011, “60 Minutes” highlighted how lawmakers with secret knowledge of legislation used it to their advantage by purchasing stocks before bills became public and profited from them. In the business world, it would be akin to insider trading, yet it was perfectly legal in the halls of Capitol Hill.

In April 2012, legislators passed the Stop Trading on Congressional Knowledge (STOCK) Act of 2012. It expanded company reporting requirements for members of Congress and prohibited purchasing or selling stocks on non-public information. Still, critics say the federal law doesn’t have much meat, and elected officials find all kinds of reasons to justify not reporting investment purchases. On Monday, August 29, Business Insider reported that 71 congressional members violated the STOCK Act.

71 Lawmakers Violate the STOCK Act

The law requires elected officials, a spouse, or a dependent child to report stock trades valued over $1,000. Over the years, House Speaker Nancy Pelosi (D-CA) has taken heat for violating the law on numerous occasions. Pelosi’s husband regularly invests large sums of money into stocks impacted by government legislation. On Wednesday, July 20, Sen. Josh Hawley (R-MO) called for bipartisan hearings to permanently ban all forms of insider trading due to Mr. Pelosi’s ongoing investments.

Still, Business Insider noted that several well-known politicians played loose with the rules. A few include…

  • Sen. Rand Paul (R-KY) — He disclosed 16 months late an investment his wife made in a biopharmaceutical company manufacturing COVID-19 treatments.
  • Sen. Sheldon Whitehouse (D-RI) — He failed to disclose on time the purchase of Tesla and Target stocks.
  • Sen. Rick Scott (R-FL) — He reported late a sale of $450,000 in shares in Emida Corporation.
  • Sen. Mark Kelly (D-AZ) — He failed to report the exercise of a stock option in an aviation company engineering a supersonic passenger plane in a timely manner.
  • Rep. Jamie Raskin (D-MD) — The longtime congressman failed to report at least three instances of purchase of shares and the sales of upwards of a combined $2 million in investments.

Click here to see the entire list.

Is the STOCK Act Sufficient?

Congress intended the law to curb perceived conflicts of interest. For every transaction over $1,000, the STOCK Act requires members to report it within 30 days of the transaction’s notice and within 45 days of the actual transaction. The statute applies to spouses and dependents also.

Over the years, politicians’ compliance has been spotty. The only punishment for violating the provision is a $200 fine, which the House and Senate ethics officials can waive. So, is that sufficient to curb what many see as insider trading?

Recently, 22 organizations submitted a letter demanding lawmakers ban stock transactions ahead of the 2022 midterm elections.

Will it happen? It’s anyone’s guess.

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